ISM Non-Manufacturing (services) report shows modest improvement

The ISM Non-Manufacturing (services) Report On Business for August showed a modest improvement since July. The NMI/PMI index was at 48.4 which is still modestly below the 50.0 breakeven level, but modestly above the 46.4 level in July. So, the services sector was still contracting, but only modestly. The good news is that the Business Activity/Production index rose moerately and is finally above the breakeven level. New Orders continue to contract, only only very slightly (49.9 versus the 50.0 breakeven level.) The Backlog of Orders continued to contract and at a faster level, but New Export orders rose sharply and are now moderately above breakeven.

Clearly we are not yet completely out of the woods, but this report was a green shoot.

-- Jack Krupansky